Ubisoft teeters on brink: Massive debt and failed launches threaten future
Ubisoft, a well-known game developer, is facing the threat of bankruptcy. Financial and operational problems, including a decline in stock value and unsuccessful releases, threaten the company's future. Net debt has risen to $1.5 billion, while cash reserves have dropped to $972 million, reports thatparkplace.com.
The French company Ubisoft is struggling with serious financial problems. The net debt has increased to $1.5 billion, and cash reserves have decreased to $972 million. The stock value has declined by 80% over the past five years, which worries investors.
One of the main issues is the unsuccessful game releases, such as "Star Wars Outlaws," which did not meet sales expectations. Ubisoft made the decision to release the game on Steam, which can be seen as a desperate move. Furthermore, operational costs related to employing over 18,600 employees amount to nearly $800 million.
They released hits
Ubisoft, known for titles like "Splinter Cell" and "Assassin's Creed," is in a financial crisis. "In the past five years, the company's shares have lost about 80% of their value and are now priced at just $13. This is one of the lowest levels in the company's history, and investor confidence in Ubisoft's ability to recover diminishes with each quarter," adds ithardware.pl.
Ubisoft is trying to save the situation by delaying releases and introducing fixes to games, as in the case of "Assassin’s Creed Shadows." However, analysts are skeptical of the company's ability to cover debts. Rumors are circulating about a possible takeover by Tencent, which could mean the end for Ubisoft. Tencent is an international corporation based in China.
